Residential Conveyancing News

Is this the long awaited upturn in the residential property market we have all been waiting for? Joanne McNally

At long last it would appear that the housing market is showing steady signs of recovery.

The latest encouraging statistics on the housing market come after the Bank of England reported a 19 per cent jump in the number of mortgages approved for house purchases during February. Property website Rightmove has also echoed the positivity and has said asking prices have gradually risen from March onwards. House prices having surged ahead by 2.6% during May, is a further sign that conditions in the property market are improving.

It is reported that May's increase was the biggest jump in house prices since October 2002 and left the average UK property costing £158,565, according to Halifax. Halifax have cautioned against reading too much into the increase, warning that even during a prominent decline, house prices did not always move in the same direction month after month. However, it added that there were some "tentative indications" that activity was stabilising, albeit at a low level and such indications are extremely positive.

The figures are in correlation with those reported by Nationwide in early June, which indicated that house prices rose by 1.2% during May, following a fall of just 0.3% in April, while the annual rate of downturn slowed to 11.3%.

In general, there has been a run of positive data on the housing market recently, with the Bank of England saying mortgage approvals for house purchases rose for the third month in a row during April, to stand at their highest level for just over a year.

Estate agents are also continuing to say buyers are returning to the market, tempted by record low interest rates and recent house price falls, while other house price indexes are either reporting price rises or a slowdown in the rate at which they are falling.

There is also evidence that first-time buyers, often described as the lifeblood of the property market, are returning, with people purchasing their first home accounting for 40% of homes purchased with a mortgage during March - the highest level for four years. Some first time buyers however, are still struggling to find a deposit large enough to secure a mortgage as lenders are only prepared to lend on low loan-to-value ratios, depending on the lender.

Nationwide, and the Royal Institution of Chartered Surveyors, say a key factor in pushing up prices is the lack of supply of houses being put on the market, as would-be vendors hold off in the hope that they will be able to sell at a higher price at some point in the foreseeable future.

If you are looking to sell or purchase a property, please contact the property department at Lees Solicitors LLP on 0151 647 9381 where we will provide an estimate of our legal fees together with a breakdown of the additional search fees required in each case. This will enable you to budget properly for your transaction. Alternatively please email us at info@lees.co.uk

Our residential conveyancing team offers a proactive and professional service dealing with all your property matters. The experience we have gained through handling high volumes of varied property work has led us to modernise our systems and structures and we have invested heavily in IT to enable us to provide a swift and efficient, yet personal service.

Joanne McNally

This article provides a summary of a recent case/change in law/news item. It is intended for general information purposes only and is not to be relied upon. It does not constitute legal advice and should not be treated under any circumstances as a substitute for legal advice. Lees Solicitors LLP does not accept any responsibility for any loss that may arise from reliance upon the information contained within this article. The copyright in this article is owned by Lees Solicitors LLP and permission must be sought before reproduction or publishing.

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